‘Ugly’ Bitcoin bubble warning as Ethereum, Solana, Cardano and XRP suddenly rebound

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Bitcoin and cryptocurrency prices rebounded after a sudden sell off last weekend that wiped an estimated $ 300 billion from the combined crypto market, with some betting the market is going much higher.

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The price of bitcoin is now trading almost 30% from its all-time high of around $ 69,000 per bitcoin set last month, settling at just over $ 50,000 after dropping to below 42 $ 000. Smaller cryptocurrencies Ethereum, Binance’s BNB, solana, cardano, and Ripple’s XRP also rebounded from the crash.

Now, a financial advisor has made a bitcoin and crypto price prediction, warning that cryptocurrency “is one of the biggest bubbles ever” and when it does burst “it’s gonna be ugly.”

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“This whole bitcoin thing – all this cryptocurrency – is one of the biggest bubbles of all time,” Ryan Payne, president of Payne Capital Management, told Yahoo Finance. “I think this bubble is going to burst eventually. It’s going to be ugly.”

The bitcoin and crypto market has exploded over the past year, soaring amid a broader rise in stocks and asset prices. Bitcoin has grown from a combined value of just $ 400 billion this time 12 months ago to around $ 1,000 billion today.

“[The crypto market] is somewhere over $ 2 trillion. When the dot com bubble burst, those dot com stocks were worth half a billion dollars. Adjusted for inflation, this works out to $ 1 trillion in today’s dollars. Most of those stocks have become worthless, ”Payne said.

Many smaller cryptocurrencies, such as ethereum and its bigger rivals BNB, solana, and Binance’s cardano, have made even larger percentage gains than bitcoin, climbing at a breakneck pace as they go. as investors rush into the market, in part thanks to massive financial stimulus programs launched by the US Federal Reserve and other central banks to offset the economic damage caused by the Covid-19 lockdowns.

“There’s too much money that can flow into this market. It’s just becoming a bigger and bigger casino,” Payne said.

“At the end of the day, we’re not using it for much more commercial use. It’s just more people speculating and I think it’s very similar to when the tech bubble burst or you go back to the real estate bubble… where everyone is involved. “

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Others, including investor Michael Burry, famous for his bet against the housing market in 2007 and played by Christian Bale in the 2015 film The Big Short, also warned that the bitcoin and crypto market was heading towards a crash. In October, Burry asked his Twitter followers “how to sell cryptocurrency?” “

Last week, Warren Buffett’s right-hand man, Berkshire Hathaway BRK. Vice President Charlie Munger warned that the markets were wilder today than during the dot-com bubble.

“The dot com boom was crazier in terms of valuations than even what we have now,” Munger told the Sohn Hearts & Minds Investment Conference in Sydney.

“But overall I consider this time even crazier than the dot com era. I just can’t stand being part of these crazy booms. Everyone wants to be involved and I have a different attitude. I want to make my money selling people things that are good for them, not things that are bad for them. “

Munger also said he wished cryptocurrencies “never were invented,” echoing Buffett’s previous criticisms of bitcoin and crypto and praising China for banning bitcoin outright.

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